The mathematics side of Net Present Value estimation is complicated. Hence, we’ve implemented the whole algorithm in our stock screener. Nevertheless, this article explains my NPV algorithm in full detail.
Generally, for banks and lenders, the asset coverage ratio (ACR) is one way to check the loan-friendliness of the company. Investors can also use the concept of
[Updated] Discounted Cash Flow (DCF) method is a better way of intrinsic value calculation. The DCF model is derived from a concept called Net Present Value (NPV).
In this method, we first estimate the ‘absolute PE’ of a stock. Then multiply the calculated PE with EPS. This will give us the fair
If you like to estimate intrinsic value of a stock, then start with Net Current Asset Value Per Share (NCAVPS). Why? Because it is the
Residual income method is a unique and a comparatively easier way to estimate intrinsic value of companies. What makes it unique is the factor called
Earning Power Value (EPV) method of stock valuation was developed by Bruce Greenwald. At the outset EPV may give an impression that it uses a too simplistic
Out of all valuation methods, companies valuation by reproduction cost method is most understandable. Valuation of a company is perhaps the most critical aspect of
